Terraform Labs seeks access to FTX wallets in fraud defense

Terraform Labs is seeking permission from a judge to subpoena data from bankrupt crypto exchange FTX, claiming the information could help its defense against a lawsuit brought by the United States Securities and Exchange Commission (SEC) in February, a court filing shows.

In a search for evidence that could back its defense from fraud charges, Terraform’s lawyers filed a motion on July 19 in FTX’s bankruptcy case to access the company’s information about digital wallets used by short sellers between March 2022 and May 2022. Terraform claims its stablecoin failure was a result of a coordinated attack from short sellers, possibly involving Alameda Research, FTX’s sister company.

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